All these bail-out tactics are just stalling the inevitable. But that’s the idea. Taking the whole hit all in one year could kill the host. But spreading it out over several years will allow survival. It’s clear to me, we’re in survival mode. And it looks exactly like the Japanese model from the early 1990’s!! The outcome is a long, protracted recession. And it will probably cause the true bottom of the real estate market to take another year or two and then bump along the bottom for at least a couple more years.
